On January 1,2010,Remco Corporation purchased 5,000 shares of Lowell Corporation common stock for $60 per share.Remco's investment represents 30 percent of the total outstanding shares of Lowell.During 2010,Lowell paid total dividends of $100,000.Remco appropriately used the equity method to account for this investment and accordingly reported the investment at a carrying value of $390,000 on December 31,2010.Compute the amount of earnings reported by Lowell Corporation for 2010.

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The Answer of On January 1,2010,Remco Corporation purchased 5,000 shares of Lowell Corporation common stock for $60 per share.Remco's investment represents 30 percent of the total outstanding shares of Lowell.During 2010,Lowell paid total dividends of $100,000.Remco appropriately used the equity method to account for this investment and accordingly reported the investment at a carrying value of $390,000 on December 31,2010.Compute the amount of earnings reported by Lowell Corporation for 2010.

On January 1,2010,Remco Corporation Purchased 5,000 Shares of Lowell Corporation